 Minorities and property values: Evidence from residential buildings in IsraelYael Elster and Noam Zussman Journal of Urban Economics, 2024, vol. 141, issue C Abstract: This study estimates, for the first time, individuals valuation of living in a building with a member of a minority, by exploiting unique restricted data on about a third of Israel’s neighborhoods. We rely on the hedonic approach and use a difference-in-differences identification strategy, comparing nearby buildings that experienced either early or late entry of minorities. We find that house prices declined by 2–3% after the first move-in of Israelis of Ethiopian origin or ultra-Orthodox Jews. Our analysis shows that New-immigrants only significantly affect prices during a massive migration wave (-10%) and indicate that Israeli Arabs do not affect prices. Results are not driven by (a) the socio-demographic profile of the minorities who enter, (b) the difference between their profile and the existing residents profile, (c) buyers and sellers profiles after the first minority entrance or (d) neighborhood characteristics. The findings support the hypothesis of segregation due to discrimination. Keywords: Residential segregation; Minorities; Housing market; Israel (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:141:y:2024:i:c:s0094119022001012 DOI: 10.1016/j.jue.2022.103525 Access Statistics for this article Journal of Urban Economics is currently edited by S.S. Rosenthal and W.C. Strange More articles in Journal of Urban Economics from Elsevier |
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